The excitement surrounding AI is undeniable. From chatbots to predictive analytics, AI’s transformative potential in insurance is clear, offering more precise risk assessments, faster claims processing, and a competitive edge for brokers willing to adapt. But with this potential comes a crucial question: how do you integrate AI in a way that enhances - rather than disrupts - existing operations?
Russ Bostick (pictured), Managing Partner at Davies, brokers looking to embrace AI’s benefits should consider a “hybrid approach”. This approach, he explained, involves integrating carefully selected AI solutions with existing operational processes, rather than allowing technology to completely take over
“It’s best to introduce AI step by step—by replacing parts of existing solutions, one at a time, you can gauge the impact of each change,” Bostick emphasized.
Taking a deliberate approach to incorporating new technology gives brokers the time to react and pivot if solutions don’t work as expected or if alternatives are needed. It's similar to driving a car: if you make sudden, reactive moves without time to assess the situation, you might miss key signals. By moving thoughtfully, brokers can ensure they’re navigating their digital transformation smoothly.
Bostick also noted that hesitations about new technology are especially common in underwriting. Traditionally grounded in historical data and expert experience, the introduction of AI tools can spark concerns about losing the baseline underwriters rely on to assess risks and measure impact. “As an underwriter, one of the things you fear is someone taking away all your tools at once,” shared Bostick.
To begin, brokers might focus on areas that are most ready for technological advancement, such as back-office operations, compliance, and fraud detection. By strategically introducing AI into these areas, brokers can evaluate the impact of each change before committing to larger-scale transformations. This measured approach allows brokerages to harness the benefits of AI incrementally, building confidence and insights that will support future advancements.
One of the key advantages of adopting a hybrid approach to new technologies is that it helps brokerages avoid over-relying on technology.
“It’s about training [brokers] to have judgment and recognize that the tool is not making a decision, it's just indicating what it thinks is the relative importance of information,” explained Bostick.
“That doesn't exempt you from digging a little deeper into what's being presented to make sure that you agree with the results provided by the automation,” he added. This approach is especially crucial in the insurance industry, where context and nuance matter, particularly in complex or atypical situations that AI may not yet be trained to handle.
“AI is a copilot. It brings critical information to the surface in a more summarized, digestible format, helping professionals make better decisions,” Bostick continued. “In doing so, it ensures that brokers aren’t overwhelmed by excessive data or distracted by irrelevant information that doesn’t contribute to resolving a claim effectively.”
While AI enhances the efficiency and focus of insurance professionals, Bostick emphasized that the technology should support, not overshadow, the expertise and judgment of human decision-makers.
If you're looking to implement tech into more of your brokerage operations but aren’t sure where to start, this step-by-step guide provides practical solutions to help you seamlessly integrate AI solutions across your business.
